Tanzania Purchase USD170m Worth of Vehicles from India

The Government of Tanzania recently made a USD170m purchase of vehicles, gensets, spares and equipment for ambulances, from Indian automobile manufacturing company Ashok Leyland.

The purchased goods will be used for the development of workshops and training modules, while the equipment will be fitted on ambulances.

“Export to key international markets is an essential part of Ashok Leyland’s strategic intent to globalize its product portfolio and derisk itself from supplying only into India. The new order from Tanzania, valued at USD170m […] reiterates market acceptance of Ashok Leyland’s products in the African region,” Vinod Dasari, Managing Director at Ashok Leyland, said while announcing the deal at the Bombay Stock Exchange (BSE).

Tanzania’s purchase will be fully financed by EXIM Bank of India under the National Export Insurance Account (NEIA) scheme.

Under the NEIA scheme, Exim Bank facilitates project exports from India by way of extending credit to overseas sovereign governments and government-owned entities for import of Indian goods and services.

Ashok Leyland notes that the Government of Tanzania recently received 773 Leyland vehicles under a line of credit from the Indian Government.

Furthermore, the company is now executing another order for supply of 777 vehicles to the Tanzanian Ministry of Home Affairs.